Midlands hiring falls sharply in October as firms hold back on recruitment - report

Hiring across the Midlands fell back sharply in October, as rising costs, economic uncertainty and slower decision-making led businesses to put recruitment on hold.

The latest KPMG and REC UK Report on Jobs: Midlands, compiled by S&P Global, found that both permanent placements and temp billings fell during the month.

At the same time, redundancies pushed up the number of candidates looking for work.

Permanent placements in the region had grown for three months in a row, but fell sharply at the start of the fourth quarter.

The rate of decline was the fastest since May. Recruiters said sluggish market conditions and rising costs were to blame, and some firms had put hiring decisions on hold because of the economic uncertainty.

Permanent placements also fell at a solid pace across the UK as a whole.

After strong growth in September, temp billings in the Midlands also fell.

The decline was modest but the steepest in 15 months, which recruiters put down to a lack of new work to replace completed contracts.

The fall was sharper in the Midlands than across the UK.

Demand for permanent staff in the region fell again, extending a run of decline to almost two and a half years.

The rate of contraction was the fastest since June.

By contrast, permanent vacancies rose modestly in London and the North of England. Temp vacancies in the Midlands fell only slightly.

The number of candidates available for permanent roles in the Midlands rose at the fastest rate since March, with redundancies cited as the main cause.

Temp candidate numbers rose for the eighth month running, growing at the fastest rate in ten months and more quickly than across the UK.

Starting salaries for permanent staff in the Midlands rose at an eight-month high, although growth remained modest by historical standards.

Pay growth for temp staff was the weakest of the four English regions covered by the survey.

Kate Holt (pictured), People Consulting partner at KPMG in the Midlands, said: “October’s figures show how fragile the improvement in the Midlands jobs market remains.

“After three months of growth, permanent hiring has fallen back sharply, while temp billings have also weakened. That points to businesses becoming more hesitant again as rising costs, uncertainty and slower decision-making weigh on recruitment plans.

“The picture is particularly challenging for jobseekers, with vacancies still falling and redundancies increasing competition.

“There are, however, areas of resilience, and the Midlands has significant opportunities ahead in sectors like advanced manufacturing, aerospace and rail. The priority is ensuring that investment translates into new projects that will deliver sustained demand for workers.”